Stock Quotes in this Article: FCEL, FXEN, IMMU, OWW, SIGA

DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

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Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including Alvarion (ALVR), which skyrocketed higher by 65.7%; ECOtality (ECTY), which soared higher by 37.5%; On Track Innovations (OTIV), which ripped higher by 25.5%; and Astex Pharmaceuticals (ASTX), which jumped higher by 24.5%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that recently ripped to the upside was shipping player Genco Shipping & Trading (GNK), which I highlighted in Aug. 15's "5 Stocks Under $10 Set to Soar" at around $2.08 per share. I mentioned in that piece that shares of GNK were bucking the overall market weakness since the stock was counter-trending in a weak tape. Shares of GNK were also starting to spike higher right off its 50-day moving average with decent upside volume. That move was starting to push shares of GNK within range of triggering a near-term breakout trade above some key overhead resistance levels at $2.32 to $2.36 a share, and then above its 200-day at $2.47 a share.

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Guess what happened? Shares of GNK pulled back to its 50-day moving average on August 19 after hitting an intraday low of $1.85 a share. This stock held that key technical level, and then it went on to trigger that breakout on August 22 with strong upside volume flows. This stock hit a recent intraday high of $3.30 a share, which represents a large gain of close to 60% for anyone who played the stock from the $2.08 a share level. That's a huge gain in a very short timeframe for anyone who played the breakout

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

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I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

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With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Orbitz Worldwide

One under-$10 name that's starting to trend within range of triggering a near-term breakout trade is Orbitz Worldwide (OWW), an online travel company that uses innovative technology to enable leisure and business travelers to search for and book a range of travel products. This stock has been on fire so far in 2013, with shares up sharply by 263%.

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If you take a look at the chart for Orbitz Worldwide, you'll notice that this stock recently gapped down and pulled back sharply from its high of $13.26 to its recent low of $9.41 a share. Shares of OWW have been finding support off that pullback and some buying interest right near its 50-day moving average of $9.57 a share. In fact, shares of OWW are spiking higher today right off that key technical level, and that spike is starting to push OWW within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in OWW if it manages to break out above some near-term overhead resistance levels at $10.15 to $10.50 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.33 million shares. If that breakout triggers soon, then OWW will set up to re-fill its previous gap down zone from earlier this month that started near $12 a share.

Traders can look to buy OWW off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $9.42 to $9.04 a share. One can also buy OWW off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Immunomedics

Another under-$10 stock that's starting to move within range of triggering a big breakout trade is Immunomedics (IMMU), which is focused on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune and other serious diseases. This stock is off to a very bullish start in 2013, with shares up sharply by 110%.

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If you take a look at the chart for Immunomedics, you'll notice that this stock has been uptrending decent for the last month, with shares moving higher from its low of $4.85 to its recent high of $6.54 a share. During that uptrend, shares of IMMU have been consistently making higher lows and higher highs, which is bullish technical price action. This uptrend is coming after shares of IMMU downtrended during July from $6.91 to that $4.65 a share low. Shares of IMMU are now starting to push within range of triggering a big breakout trade.

Market players should now look for long-biased trades in IMMU if it manages to break out above some near-term overhead resistance at $6.54 a share and then once it clears its 52-week high at $6.91 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 1.15 million shares. If that breakout triggers soon, then IMMU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $8 to $10 a share, or possibly even north of $10 a share.

Traders can look to buy IMMU off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $5.52 a share or below more support at $5 a share. One can also buy IMMU off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

FX Energy

An under-$10 energy player that's trending very close to triggering a major breakout trade is FX Energy (FXEN), which is an independent oil and gas exploration and production company with principal production, reserves and exploration in Poland and oil production, oilfield service and exploration activities in the U.S. This stock has been under selling pressure so far in 2013, with shares off by 12.6%.

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If you take a look at the chart for FX Energy, you'll notice that this stock recently formed a double bottom chart pattern at $2.82 to $2.93 a share. Following that bottom, shares of FXEN are now starting to uptrend and push back above its 50-day moving average of $3.41 a share. That move is quickly pushing shares of FXEN within range of triggering a major breakout trade above a key downtrend line that started back in late May.

Traders should now look for long-biased trades in FXEN if it manages to break out above its 200-day moving average at $3.75 a share and then once it takes out more near-term overhead resistance at $3.98 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 478,408 shares. If that breakout triggers soon, then FXEN will set up to re-test or possibly take out its next major overhead resistance levels at $4.50 to $4.76 a share. Any high-volume move above those levels will then put its May high at $6.18 into range for shares of FXEN.

Traders can look to buy FXEN off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.11 to $2.93 a share. One can also buy FXEN off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Siga Technologies

Another under-$10 name pharmaceutical player that's starting to move within range of triggering a big breakout trade is Siga Technologies (SIGA), which discovers, develops, manufactures and commercializes drugs to prevent and treat diseases including smallpox, Ebola, dengue, Lassa fever and other dangerous viruses. This stock is off to a strong start in 2013, with shares up by 35%.

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If you take a look at the chart for SIGA Technologies, you'll notice that this stock has been trending inside of a consolidation pattern for the last two months, with shares moving between $3.16 on the downside and $3.74 on the upside. Shares of SIGA have just started to spike higher above its 50-day moving average at $3.27 a share and it's now moving within range of triggering a big breakout trade above the upper-end of its recent range.

Market players should now look for long-biased trades in SIGA if it manages to break out above some near-term overhead resistance levels at $3.70 to $3.74 a share and then once it takes out more resistance at $4 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 263,209 shares. If that breakout triggers soon, then SIGA will set up to re-test or possibly take out its 52-week high at $4.60 a share. If that level gets taken out with volume, then SIGA could easily tag its next major overhead resistance levels at $5 to $5.90 a share.

Traders can look to buy SIGA off weakness to anticipate that breakout and simply use a stop that sits right below its 200-day moving average of $3.26 a share, or below more key support at $3.16 a share. One can also buy SIGA off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

FuelCell Energy

One final under-$10 alternative energy player that looks ready to trigger a big breakout trade is FuelCell Energy (FCEL), which designs, manufactures, sells, installs, operates and services ultra-clean, highly efficient stationary fuel cell power plants for distributed baseload power generation. This stock is off to a hot start in 2013, with shares up by 29%.

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If you take a look at the chart for the FuelCell Energy, you'll notice that stock this stock has been downtrending for the last three months, with shares moving lower from its high of $1.64 to its recent low of $1.12 a share. During that move, shares of FCEL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of FCEL have started to find support right above its 200-day moving average at $1.12 a share and the stock now look looks ready to trigger a big breakout trade above a key downtrend line.

Traders should now look for long-biased trades in FCEL if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $1.24 to more resistance at $1.27 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.67 million shares. If that breakout triggers soon, then FCEL will set up to re-test or possibly take out its next major overhead resistance levels at $1.41 to $1.50 a share. Any high-volume move above those levels will then put its 52-week high at $1.64 to its next major resistance level at $1.95 into range for shares of FCEL.

Traders can look to buy FCEL off weakness to anticipate that breakout and simply use a stop that sits right below its 200-day moving average at $1.10 a share. One can also buy FCEL off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 Stocks Under $10 to Trade for Breakouts
>>3 Big Stocks to Trade (or Not)

>>4 Stocks Rising on Unusual Volume

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.